Pendragon Sees 1H Profit In Line With Expectations

29th Jun 2010 07:29

Pendragon PLC (PDG.LN), said Tuesday that aftersales profitability in the first half of the year has continued to improve year on year, and said it expects profitability for the six months to June 30, to be in line with expectations MAIN FACTS: -The company is pursuing a strategy to grow aftersales profitability. -A number of aftersales initiatives designed to secure this growth are being presented at the investor day. -As forecast, used car sales volumes have continued to grow year on year and used car margins have stabilized. -Used car margins are expected to remain stable and used car volume expected to grow during the year. -Excluding scrappage, Group new retail car sales are outperforming the market. -Premium new car sales continue to demonstrate the "V" shaped recovery profile. -Volume new car sales have stabilized following the end of scrappage. -Net debt levels at June 30 will be higher than expected, almost all due to new vehicle stock related to new product launches, and anticipates this will have reversed by the year end. -Reduction of debt remains a top priority and is under strict control. -Remain cautiously optimistic about the prospects for the remainder of 2010 and expect profitability for the year to be in line with expectations. -By London Bureau, Dow Jones Newswires; Contact Razak Musah Baba; +44 (0)20 7842 9275; [email protected] (END) Dow Jones Newswires June 29, 2010 02:29 ET (06:29 GMT)